Market prices provide information to consumers, helping them coordinate their activities so long as
a. competition is present and buyers and sellers are free to choose mutually agreeable prices.
b. prices are not allowed to rise too high, causing a shortage.
c. prices are legally kept equal in all markets, preventing unfair price increases in markets with shortages and unfair price decreases when a market surplus is present.
d. the government carefully screens producers and effectively keeps inefficient producers out of the market.
A
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A change in the money wage rate shifts
A) both the SAS and LAS curves. B) the LAS curve but not the SAS curve. C) the SAS curve but not the LAS curve. D) neither the SAS nor the LAS curve.
China's government runs a budget surplus. As a result,
A) saving will exceed investment. B) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve. C) the quantity of loanable funds decreases. D) interest rates should increase. E) the Ricardo-Barro effect predicts that the real interest rate will increase.
________ is equal to consumption spending plus planned investment spending plus government purchases plus net exports
A) Planned aggregate expenditure B) Planned inventory investment C) Full employment GDP D) Short-run aggregate supply
There are substantial racial differences in college attendance, within income classes
Indicate whether the statement is true or false